03/05/2003 03:30 PM RES

SB 79-EXTEND ALASKA MINERALS COMMISSION
SENATOR BEN STEVENS, sponsor of SB 79, told members this measure
would extend the Alaska Minerals Commission to 2014. It is
currently set to expire February 1, 2004. The Alaska Minerals
Commission was established in 1986 to make recommendations to
the governor and legislature on ways to mitigate constraints on
development of mineral resources in Alaska. The commission is
comprised of six appointees by the governor and three appointees
each by the Senate President and House Speaker. He believes the
commission has done an excellent job over the last 16 years. He
highlighted some of the commission's recommendations that have
been adopted:
· Passage of the Minerals Policy Act.
· Funding for the airborne geophysical surveys.
· Assisting in the creation of a task force for RS2477 trail
inventory.
· Assertion of RS2477 rights-of-way.
· Legislative Resolution 31 passed in opposition of the
creation of international parks, world heritage sites, and
marine biosphere reserves in Western Alaska.
· Extending terms of permits when legal impediments prevent
use.
SENATOR BEN STEVENS stated the Alaska Minerals Commission has
been working well so he believes the Legislature should allow it
to do its good work. He pointed out the recommendations in the
executive summary of the Report of the 2003 Alaska Minerals
Commission are valuable. He encouraged committee members to pass
SB 79 on.
CHAIR OGAN took public testimony.
MR. LANCE MILLER, Executive Director of the Juneau Economic
Development Council (JEDC), told members that prior to his
current position, he was the projects manager with Placer Dome
and he worked as chief geologist with Echo Bay [Mining] on the
A-J project for nine years. He said SB 79 will extend the
commission for a longer period of time than has been done
previously. He noted that the minerals industry is a billion
dollar industry - the third largest in the state. Mining
companies are committing their capital to Alaska over the course
of 10 to 20 years, just to get a project going. Mines take at
least ten years to build. He believes if the Commission is in
existence for at least ten years running, that will send a good
message to the industry. He summarized that if companies are
willing to commit risk capital for that time frame in the hope
of getting a mine going, a ten year extension of the commission
will show good will toward a working partnership with industry.
CHAIR OGAN asked the length of the previous extension.
MR. MILLER said it was five years.
MR. NEIL MacKINNON, Vice Chair of the Alaska Minerals Commission
and President of Hyak Mining Company, a small Juneau-based
exploration company, told members he has been on the commission
through several five-year extensions and five years passes very
quickly. He said that when it comes time to write the Alaska
Minerals Commission report, members do a vast amount of work
that is not accounted for in the budget: they do the work to get
it done.
MR. MacKINNON told members the Alaska Minerals Commission is
made up of a diverse group of individuals, from placer miners to
representatives of companies such as Cominco. Members bring a
vast array of views therefore the Commission takes an
overarching view of the problems facing the mining industry. The
commission also tries to look ahead for potential problems. One
example is essential fish habitat, which the commission picked
up on its "radar screen" several years ago. It is a brewing
problem that has not come to the forefront yet.
SENATOR DYSON asked Mr. MacKinnon to clarify what "essential
fish habitat" means to the mining industry.
MR. MacKINNON said that the Stevens-Magnuson Act contains a few
lines that give the National Marine Fisheries Service (NMFS)
power over what it deems to be essential fish habitat. He said
when the act was written, he thinks it was meant to address
ground fish and bottom draggers. While the tendency of
bureaucracies is to expand power as far as possible, he sees
NMFS exercising that authority over creeks and any water body.
He noted that numerous groups are working on the issue,
including U.S. Senator Ted Stevens and the Resource Development
Council. He repeated that the NMFS policy has not yet been fully
expanded so that keeping the issue on the radar screen may be
enough to control the problem.
SENATOR DYSON asked:
So, when you say 'essential fish habitat' you're
talking about the regulatory problems that come from
those lines being in the National Marine Fisheries.
And when you talk about wetlands problems, you're
talking about the jurisdiction of the Corps of
Engineers and others over wetlands and how that impact
might - you're not just talking about the wetlands.
MR. MacKINNON stated the Alaska Minerals Commission sees this as
a wetlands problem coming from another angle - the National
Marine Fisheries Service, based on the 'essential fish habitat'
definition, which is a rough definition.
SENATOR LINCOLN noted this will be the fourth extension of the
Alaska Minerals Commission, which she supports. She pointed out
SB 79 does not address the length of the terms of commission
members and asked if members are appointed for a five-year term.
MR. MacKINNON said members serve at the pleasure of the
appointee. He noted the statute is not clear about term limits.
SENATOR LINCOLN suggested that the term be clearly defined so
that the people who are serving understand how long they will be
in office. She noted that serving for five-years may seem like a
lifetime to some people while that amount of time passes quickly
for others. She then asked why, if the five-year extensions have
posed no problem, the commission believes a ten-year extension
will be more beneficial.
MR. MacKINNON replied:
Well, maybe it's just a perspective that five years
comes real fast. That was part of the comment that
it's been over and over so let's just put ten years
and go for ten because it gives a little more
permanence to it and, like I say, five years isn't
that long.
CHAIR OGAN pointed out the statute says that members serve at
the pleasure of the appointing authority and members must have
at least five years experience in various aspects of mineral
industries in the state.
SENATOR LINCOLN asked if the commission has ever recommended
terms for members to the legislature.
MR. MacKINNON said that he was appointed by the Senate
President, and if the Senate President chooses to appoint
someone else, that is his choice. He said that one commission
member brought up this discussion thinking that the commission
should get some "fresh blood." However, in the history of the
commission, there has been enough turnover from people leaving
to take other positions or for other reasons. As an example, Tom
Irwin will no longer serve on the commission as he has taken the
position as the Commissioner of the Department of Natural
Resources.
CHAIR OGAN asked how often the Alaska Minerals Commission meets.
MR. MacKINNON said it meets three times per year. Its report to
the legislature is due in December.
CHAIR OGAN asked Mr. MacKinnon if he feels the report gets
attention.
MR. MacKINNON said that depends on the make-up of the
legislature, but it has during the last few years.
SENATOR LINCOLN said she is pleased to see that two women serve
on the 11 member commission but she would like to see that
number expanded.
MR. MacKINNON said that Irene Anderson is the Chair and that the
women "probably do most of the heavy lifting."
SENATOR ELTON said he supports the Alaska Minerals Commission
and feels it is a model that is being looked at for other
economic sector proposals in Alaska.
MS. IRENE ANDERSON, Chair, Alaska Minerals Commission,
maintained that a ten-year extension will save a lot of people
time, such as legislators and staff. She agrees with Mr.
MacKinnon that members come and go and that the group is very
diverse. She indicated that ten years is not a long time period
in the mining industry, especially when trying to build
infrastructure in rural Alaska.
CHAIR OGAN asked Ms. Anderson to describe her background.
MS. ANDERSON said she comes from a family of placer miners in
the Nome area. Her husband is originally from McGrath. She said
her grandfather began mining in Nome in 1905.
Ms. Frankie Pillifant, staff to the Alaska Minerals Commission,
was available to answer questions, however there were none.
SENATOR BEN STEVENS moved SB 79 from committee with individual
recommendations and its attached fiscal note.
CHAIR OGAN announced that without objection, SB 79 would move
from committee.